“The government should consider removing rental pressure zones”

The document was discussed in the Cabinet subcommittee on housing in recent days.

It was suggested that the RTB should run a campaign on rental standards, to ensure that landlords are aware of these standards and existing compliance requirements.

The paper recommends that the review of rental pressure zones be undertaken before they expire at the end of 2025.

The report is understood to recommend that any review should consider whether rent pressure zones should be “retained, removed or modified”.

Under current legislation, rental pressure zones are areas where rent increases are capped at a maximum of 2% per year or the rate of inflation, whichever is lower.

The rules apply to both new and existing rentals.

They are mainly located in areas of the country where rents are high and increasing, including Cork City, Carrigaline, Cobh and Fermoy.

In May, the government agreed to extend the rules until the end of 2025.

The recent Housing Commission report also recommended changing the rental pressure zones, introducing a new system of “reference rents”.

This system would allow rent increases to be set based on a “reference rent” for local properties of similar quality.

This means that the rent cannot increase by a certain percentage above this “reference rent” over a given period.

“When they were introduced, the rental pressure zones were intended as a temporary measure. Seven years later, the regulatory system must be adapted for longer-term use,” the report states.

The latest RTB rental index showed that new tenants are paying significantly more than existing tenants to rent a property.

The price of a new lease increased by 9.1% last year, while existing leases increased by 5.9%.

Although this figure is higher than the 2% rental pressure zone rules, the RTB insisted that this does not mean there are widespread breaches of the law.

He said, however, that measures were needed to combat landlords who illegally increase rents.

The report also discusses the need to increase the supply of affordable rental housing across the country.

Last year, 869 affordable rental properties were delivered by local authorities, the Land Development Agency and affordable housing organisations combined.

A further 97 properties have been converted into affordable rental properties through the In Situ Rental programme.

Under the Housing for All initiative, the government has set a target of delivering 18,000 cost-effective rental homes by 2030.